Netflix, the popular video streaming platform, is reportedly planning to increase prices of its ad-free plans in the next few months, reported The Wall Street Journal, citing unnamed sources.
According to the report, Netflix is considering raising prices for its ad-free plan after the SAG-AFTRA strike ends, starting with the U.S. and Canada before expanding to a number of markets around the world. However, there is no information on how much the prices will increase on the ad-free plans.
“The streaming service is discussing raising prices in several markets globally, but will likely begin with the U.S. and Canada, according to people familiar with the matter. It couldn’t be learned how much Netflix will raise prices by or when exactly the new prices will take effect,” the report says.
For those unaware, SAG-AFTRA stands for the Screen Actors Guild – American Federation of Television and Radio Artists, a union that signifies around 160,000 film and TV actors, radio personalities, and other media professionals.
The Hollywood actors started striking against the main Hollywood studios and major streamers, including Netflix, in July, for increased minimum pay rates and increased royalty payments for work on streaming services. Currently, they are in negotiations with the Alliance of Motion Picture and Television Producers (AMPTP), and a possible agreement between the two parties could end the strike soon.
At present, Netflix offers an ad-free “Standard” plan for $15.49 per month that allows you to stream on up to two concurrent devices with a maximum resolution of 1080p or full high definition. It also has a “Premium” plan, which costs $19.99 per month, which will allow you to stream on up to four simultaneous streams at once at a maximum picture quality of 4K ultra-high definition.
In July, Netflix stopped offering its Basic ad-free plan that costed $9.99 per month in the U.S. and £6.99 per month in the UK in order to nudge value-conscious consumers to sign up for the ad-supported tier or one of the higher-priced tiers.
Recently, Netflix’s competitor, The Walt Disney Co., announced that it is increasing prices for the standalone premium tiers of Disney+, Hulu, and ESPN+ in the U.S., in the U.S. starting October 12.
Netflix has not yet made any official announcement regarding the price hike of its ad-free plans. Stay tuned for more updates, as this is a developing story!